In 2014, Parla Corporation sold land to its subsidiary, Sidd Corporation, for $38,000. It had a book value of $24,000. In the next year, Sidd sold the land for $41,000 to an unaffiliated firm.  The 2014 unrealized gain from the intercompany sale Select one: a. should be recognized in consolidation in 2014 by a working paper entry. b. should be eliminated from consolidated net income by a working sheet entry that debits land for $14,000 c. should be eliminated from consolidated net income by a working sheet entry that credits gain on sale of land for $14,000. d. should be eliminated from consolidated net income by a working sheet

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In 2014, Parla Corporation sold land to its subsidiary, Sidd Corporation, for $38,000. It had a book value of $24,000. In the next year, Sidd sold the land for $41,000 to an unaffiliated firm.  The 2014 unrealized gain from the intercompany sale Select one: a. should be recognized in consolidation in 2014 by a working paper entry. b. should be eliminated from consolidated net income by a working sheet entry that debits land for $14,000 c. should be eliminated from consolidated net income by a working sheet entry that credits gain on sale of land for $14,000. d. should be eliminated from consolidated net income by a working sheet entry that credits land for $14,000
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